Advisers line up for Kuwait metro scheme

25 November 2009

Public-private partnership project attracts interest from 45 consultants

More than 45 consultants have expressed interest in Kuwait’s Metropolitan Rapid Transit project, the second public-private partnership (PPP) scheme launched by the government since the summer.

The advisers submitted their expressions of interest on 22 November.

The Partherships Technical Bureau, which is overseeing the scheme, is due to complete work on the request for proposals in mid-December.

The winning bidder will act as the transaction adviser, helping the bureau structure, procure and negotiate the deal. This includes validating previous feasibility studies, carrying out due diligence on the project and overseeing the tendering process.

The $7bn metro scheme involves the construction of a 171-kilometre-long inner-city transport network with four lines running across Kuwait City. About 60km of the lines will be built underground.

A private developer will design, build, finance, operate and maintain the metro network. The developer will own 40 per cent of the project company, the government will own 10 per cent and the state will sell the remaining 50 per cent in an initial public offering.

Separately, consultants submitted their bids for the country’s first independent water and power project (IWPP) on 10 November.

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